Facts:
- USDCHF bounced off key resistance area at 0.8150-0.8160
- The pair is trading in a downward move from 29th of May
Recommendation:
Trade: Short USDCHF at market price
Targets: 0.8068, 0.8030
Stop: 0.8175
Opinion:
Looking at the USDCHF chart, one can see a potential downward trend resumption. The recent upward correction was stopped at the key resistance area at 0.8150-0.8160. The area marked with red color is a result of upper limit of 1:1 structure, previous low from 2nd of June as well as 100-period moving average. According to the Overbalance methodology, as long as the price sits below the aforementioned resistance area, the main trend remains downward. Taking this into account, downward movement seems to be the base scenario. We recommend a short position on the USDCHF at the market price with two targets: 0.8068 and 0.8030. We also recommend placing a stop loss at 0.8175. Source: xStation5
